Question:
A cycle dealer offers a discount of 10% and still makes a profit of 26%. What is the actual cost to him of a cycle whose marked price is Rs 840?
Solution:
Given,
MP of the cycle $=$ Rs. 840
Discount $=10 \%$
So, $\mathrm{SP}=\mathrm{MP} \times\left(\frac{100-\text { Discount } \%}{100}\right)$
$=840 \times\left(\frac{100-10}{100}\right)$
$=$ Rs. 756
Now, SP $=$ Rs. 756 and Gain $=26 \%$
So, $\mathrm{CP}=\frac{100}{100+\text { Gain } \%} \times 756$
$=\frac{100}{126} \times 756$
$=$ Rs. 600
Hence, the actual cost of the cycle is Rs. 600 .